OpenAI Hires Apple Talent for Its "iPhone of AI" Project

OpenAI is executing a calculated and aggressive strategy to enter the consumer hardware market, directly challenging the smartphone’s dominance by systematically hiring key Apple talent and securing partnerships with its core suppliers. The latest OpenAI hardware project updates show OpenAI has recruited more than two dozen employees from Apple since early 2025 and has already signed manufacturing contracts with Luxshare, a major assembler of iPhones and AirPods. This move is part of a broader initiative, codenamed “io,” to de-risk the creation of what insiders call the “‘iPhone of AI’.” The project, led by former Apple design chief Jony Ive, aims to build a new category of AI-native devices, a push that has reportedly alarmed executives in Cupertino, as these moves indicate a deliberate effort to follow the proven Apple playbook for bringing a new product to market at scale.

Cupertino’s Blueprint Redrawn

OpenAI’s hardware ambitions are being built on a foundation meticulously copied from the company it aims to disrupt. The OpenAI Apple playbook strategy centers on two pillars: acquiring elite talent with proven experience and integrating into an established, world-class manufacturing ecosystem to mitigate production risks.

Since early 2025, the company has successfully recruited a significant team of hardware specialists directly from Apple. This talent drain, which now includes more than two dozen individuals, is spearheaded by Tang Tan, who previously oversaw production for Jony Ive’s designs and now serves as OpenAI’s Chief Hardware Officer. Notable hires who underscore the seriousness of this effort include 15-year Apple veteran Cyrus Daniel Irani and Matt Theobald, with 17 years of experience at the company, according to a detailed report from The Decoder . The fact that OpenAI hires Apple talent for hardware with such precision has not gone unnoticed.

The same report notes that Apple executives reportedly canceled an annual offsite meeting in China, concerned that having key leaders away would make it easier for OpenAI to continue its recruitment drive.

On the manufacturing front, new OpenAI hardware supply chain news confirms the company has signed contracts with Luxshare to assemble its first device. This partnership gives OpenAI immediate access to large-scale production capabilities, bypassing years of development and risk. Additionally, OpenAI has approached Goertek, another critical Apple supplier, for key components. By tapping into this network, OpenAI gains immediate access to large-scale production capabilities, bypassing years of development and risk.

The $6.5 Billion Design Gambit

The vision for OpenAI’s hardware is rooted in Project “io,” a venture born from the May 2025 acquisition of Jony Ive’s design firm, io Products, in a deal valued at approximately $6.5 billion with financial backing from SoftBank, as reported by TS2.tech and other outlets. The project’s goal is to create hardware that is not just AI-enabled but AI-native, where the entire user experience is built from the ground up for seamless interaction with artificial intelligence.

The company is exploring several form factors that move away from screen-based interaction toward a more ambient, voice-first model. Prototypes reportedly include a screen-free smart speaker, smart glasses, and a wearable pin, according to PCMag, while other reports mention concepts like a digital voice recorder. CEO Sam Altman described the vision for a wearable as a potential “third core device” that “listens, watches, learns, and then acts” as a proactive assistant. The first OpenAI iPhone of AI device is expected to be a pocket-sized gadget designed for deep integration with ChatGPT, with a projected launch in late 2026 or early 2027.

Ghosts of Gadgets Past

OpenAI’s initiative enters a market littered with the wreckage of recent, high-profile failures. The path to a new hardware paradigm is perilous, a reality that the project’s leadership appears to acknowledge. The Humane AI Pin, launched in 2024, was a commercial and critical flop, shutting down in early 2025 after processing more returns than sales (ts2.tech). Similarly, the Rabbit R1 was met with underwhelming reviews, with many critics dismissing it as little more than “an Android app in gadget form.”

Crucially, Jony Ive himself reportedly criticized the Humane pin’s design and user experience. This awareness from OpenAI’s lead designer suggests a deep understanding of the pitfalls that plagued previous attempts. The company also faces active competition from Meta, whose Ray-Ban Display smart glasses offer a different vision for AI wearables by augmenting a familiar form factor with a built-in display and gesture controls.